Statement by Mr. Wang Qun of the Chinese Delegation at the 2012 ECOSOC Substantive Session Under Agenda Item 6(a): Follow-up to the International Conference on Financing for Development

2012/07/12

Mr. President:

The Chinese Delegation associates itself with the statement made by Algeria on behalf of the Group of 77 and China.

Currently, the world economic operation continues to be highly unstable and uncertain. The growth of major economies is anemic, some countries are beset by acute sovereign debt problems, and new risks are taking form while the underlying problems that gave rise to the international financial crisis have yet to be solved. Financing for development is now confronted with even more daunting challenges. Many developing countries, especially LDCs, face multiple challenges such as rising food and energy prices, declining foreign direct investment, growing trade protectionism and increasing debt burden. As a result, their development environment has deteriorated. Important documents as the Monterrey Consensus and the Doha Declaration on Financing for Development have provided a comprehensive framework for financing for development, but the amount of ODA delivered falls far short of the committed target, and the sovereign debt crisis of developed countries has further aggravated the uncertainties regarding the prospect of financing for development.

ECOSOC, as the core UN body in charge of coordinating economic and social affairs, should continue to play an active role in the area of financing for development, promote the establishment and improvement of equal, mutually beneficial and win-win global partnerships for development, and push for the timely achievement of the MDGs. To this end, China proposes that efforts be made in the following three aspects:

First, promote the steady recovery of the world economy. Countries should carefully study the systemic risks in the world economy and work together to overcome the negative effects of the European debt crisis. They should also strengthen the coordination of their macroeconomic policies and maintain stability of the international financial market with a view to promoting vigorous, sustainable, and balanced growth of the world economy.

Second, uphold the position of ODA as the main channel of development financing. Over the years, developing countries have achieved significant progress in economic development through their own efforts. However, global economic development is still uneven, with the gap in development between the North and the South continuing to widen. As an important foundation for international development cooperation, ODA remains the main source of development financing for many developing countries. Developed countries should show greater political will to effectively honor their commitment of providing 0.7% of GDP as ODA to developing countries. Innovative financing, South-South cooperation, and triangular cooperation are supplement to, not substitute for, North-South cooperation.

Third, help developing countries achieve sustainable development. The UN Conference on Sustainable Development (Rio+20) has produced a new blueprint for global sustainable development. In spite of inadequate international aid and support, developing countries remain committed to sustainable development and have made important contributions to the success of the Conference. The international community should step up the implementation of the outcome of the Rio+20 Conference and provide new and additional financing in support of developing countries. We hope that the General Assembly will launch the intergovernmental process as soon as possible to submit a report proposing options on an effective sustainable development financing strategy.

Mr. President,

As a developing country with 150 million people living under the poverty line set by the United Nations, China is faced with tough development tasks. While working to overcome its own difficulties, China has always tried its best to provide assistance to other developing countries within the framework of South-South cooperation. Up till the end of 2011, China has canceled debts owed by 50 highly indebted poor countries and LDCs in the total amount of nearly 30 billion RMB. We have committed to granting zero-tariff treatment to products under 97% of tariff items from most of the LDCs. Together with UNDP, we have established the China International Poverty Alleviation Center to share China's experience in poverty alleviation with all other countries of the world. We have also provided training for over 35,000 management and technical personnel from LDCs and built large numbers of infrastructure facilities in LDCs such as hospitals, roads, and drinking water facilities. All this has been done without any political conditions attached.

To advance the sustainable development of developing countries, Premier Wen Jiabao announced at the Rio+20 Conference that China would donate $6 million to the UNEP Trust Fund to be used for projects and activities aimed at helping developing countries build capacity in environmental protection. In addition, China will set aside 200 million RMB for international cooperation over three years to help small island nations, LDCs, and African countries cope with climate change. China will continue to actively participate in the process of international financing for development, and promote the full implementation of the Monterrey Consensus and the Doha Declaration on Financing for Development, thus contributing to international development cooperation.